State of Georgia Table of Contents For the Fiscal Year Ended June 30, 2017 INTRODUCTORY SECTION Letter of Transmittal................................................................................................................................................................ i Organizational Chart............................................................................................................................................................... v Principal State Officials.......................................................................................................................................................... vii Certificate of Achievement..................................................................................................................................................... ix Acknowledgements................................................................................................................................................................. xi FINANCIAL SECTION Independent Auditor's Report.................................................................................................................................................. 1 Management’s Discussion and Analysis................................................................................................................................. 7 Basic Financial Statements Government-wide Financial Statements Statement of Net Position................................................................................................................................................ 29 Statement of Activities..................................................................................................................................................... 30 Fund Financial Statements Governmental Funds Balance Sheet............................................................................................................................................................... 32 Reconciliation of Fund Balances to the Statement of Net Position............................................................................. 33 Statement of Revenues, Expenditures, and Changes in Fund Balances...................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities......................................................................... 35 Proprietary Funds Statement of Net Position............................................................................................................................................. 36 Statement of Revenues, Expenses, and Changes in Fund Net Position....................................................................... 39 Statement of Cash Flows.............................................................................................................................................. 40 Fiduciary Funds Statement of Fiduciary Net Position............................................................................................................................ 42 Statement of Changes in Fiduciary Net Position......................................................................................................... 43 Component Units Statement of Net Position............................................................................................................................................. 44 Statement of Activities................................................................................................................................................. 48 Notes to the Financial Statements Index............................................................................................................................. 51 Notes to the Financial Statements....................................................................................................................................... 52 Required Supplementary Information Budgetary Comparison Schedule........................................................................................................................................ 200 Budget to GAAP Reconciliation......................................................................................................................................... 202 Notes to Required Supplementary Information - Budgetary Comparison.......................................................................... 204 Public Entity Risk Pool....................................................................................................................................................... 206 Required Supplementary Information - Pensions Schedules of Employers’ and Nonemployers’ Contributions......................................................................................... 208 Schedules of Employers’ and Nonemployers’ Net Pension Liability............................................................................. 209 Schedules of Changes in Employers’ and Nonemployers’ Net Pension Liability.......................................................... 210 Schedule of Investment Returns..................................................................................................................................... 213 Notes to Required Supplementary Information - Methods and Assumptions................................................................ 214 Schedules of State’s Contributions - As Employer......................................................................................................... 217 Schedules of State’s Contributions - As Nonemployer Contributing Entity................................................................... 218 Schedules of State’s Proportionate Share of the Net Pension Liability - As Employer.................................................. 219 Schedules of State’s Proportionate Share of the Net Pension Liability - As Nonemployer Contributing Entity........... 220 State of Georgia Table of Contents For the Fiscal Year Ended June 30, 2017 Required Supplementary Information - Other Postemployment Benefits Schedule of Funding Progress for Other Postemployment Benefits............................................................................... 222 Schedules of Employers’ Contributions........................................................................................................................... 223 Schedules of Employers’ Net OPEB Liability................................................................................................................. 224 Schedules of Changes in Employers’ Net OPEB Liability.............................................................................................. 225 Schedule of Investment Returns...................................................................................................................................... 227 Notes to Required Supplementary Information - Methods and Assumptions................................................................. 228 Supplementary Information - Combining and Individual Fund Statements Nonmajor Governmental Funds Description of Nonmajor Governmental Funds............................................................................................................... 234 Combining Balance Sheet................................................................................................................................................ 236 Combining Statement of Revenues, Expenditures and Changes in Fund Balances........................................................ 238 Nonmajor Enterprise Fund Description of Nonmajor Enterprise Funds............................................................................................................... 242 Combining Statement of Net Position............................................................................................................................. 244 Combining Statement of Revenues, Expenses and Changes in Fund Net Position......................................................... 245 Combining Statement of Cash Flows.............................................................................................................................. 246 Internal Service Funds Description of Internal Service Funds............................................................................................................................. 250 Combining Statement of Net Position............................................................................................................................. 252 Combining Statement of Revenues, Expenses and Changes in Fund Net Position......................................................... 254 Combining Statement of Cash Flows.............................................................................................................................. 256 Risk Management Combining Statement of Net Position...................................................................................................................... 260 Combining Statement of Revenues, Expenses and Changes in Fund Net Position.................................................. 262 Combining Statement of Cash Flows....................................................................................................................... 264 Fiduciary Funds Description of Fiduciary Funds......................................................................................................................................